3G, losses, 4G, cost cuts

Soon after roll out of 4G services in select cities in India, Airtel lowered cost of 3G services by 70 percent. Soon Vodafone and Idea has joined the race. Idea Cellular has slashed tariffs on gold standard 3G services by up to 70 percent and has introduced ‘try and buy’ packs at INR 10 and 25. Vodafone has downsized monthly rentals on 3G promo packs by 33 percent.

Companies are already in a difficult situation due to high bidding of the 3G spectrum followed by delayed roll out of services and low performance in the Market.

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Reliance Communication, the major competitor of Airtel in 4G, opens its low-cost cards on 3G services. It lowered the services by 61 percent- from INR 650 for 1GB and 50 paisa for each MB thereafter, it will be now INR 250 for usage upto 1GB and 20 paisa each MB thereafter.

Vodafone is now offering ‘pay as you go’ tariff at 2 paisa per 10 MB, which is bit cheaper than Airtel’s 3 paisa per 10 MB. The GSM operator now offers 25 MB for a day for Rs 26. There is also a Rs 44 pack that offers 150 MB for 7 days while Rs 102 pack now offers 300 MB for a month. (from- themobileIndian.com)